# 30 C.F.R. § 203.32 (2026): What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_32

## Section

- **Citation:** 30 C.F.R. § 203.32 (2026)
- **Heading:** What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 30 CFR: Mineral Resources / Chapter II: BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, DEPARTMENT OF THE INTERIOR / Part 203: RELIEF OR REDUCTION IN ROYALTY RATES / Subpart B: OCS Oil, Gas, and Sulfur General / § 203.32: § 203.32   What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?

## Text

(a) If a qualified ultra-deep well on your lease is within a unitized portion of your lease, the RSV earned by that well under this section applies only to your lease and not to other leases within the unit or to the unit as a whole.
(b) If your qualified ultra-deep well is a directional well (either an original well or a sidetrack) drilled across a lease line, then either:
(1) The lease with the perforated interval that initially produces earns the RSV or
(2) If the perforated interval crosses a lease line, the lease where the surface of the well is located earns the RSV.
(c) Any RSV earned under § 203.31 is in addition to any royalty suspension supplement (RSS) for your lease under § 203.45 that results from a different wellbore.
(d) If your lease earns an RSV under § 203.31 and later produces from a deep well that is not a qualified well, the RSV is not forfeited or terminated, but you may not apply the RSV earned under § 203.31 to production from the non-qualified well.
(e) You owe minimum royalties or rentals in accordance with your lease terms notwithstanding any RSVs allowed under paragraphs (a) and (b) of § 203.31.
(f) Unused RSVs transfer to a successor lessee and expire with the lease.

## Nearby sections

- [30 C.F.R. § 203.30 (2026) § 203.30   Which leases are eligible for royalty relief as a result of drilling a phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_30.md)
- [30 C.F.R. § 203.31 (2026) § 203.31   If I have a qualified phase 2 or qualified phase 3 ultra-deep well, what royalty relief would that well earn for my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_31.md)
- [30 C.F.R. § 203.32 (2026) § 203.32   What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_32.md)
- [30 C.F.R. § 203.33 (2026) § 203.33   To which production do I apply the RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease or in my unit?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_33.md)
- [30 C.F.R. § 203.34 (2026) § 203.34   To which production may an RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease not be applied?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_34.md)
- [30 C.F.R. § 203.35 (2026) § 203.35   What administrative steps must I take to use the RSV earned by a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_35.md)
- [30 C.F.R. § 203.36 (2026) § 203.36   Do I keep royalty relief if prices rise significantly?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_36.md)
- [30 C.F.R. § 203.40 (2026) § 203.40   Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_40.md)
- [30 C.F.R. § 203.41 (2026) § 203.41   If I have a qualified deep well or a qualified phase 1 ultra-deep well, what royalty relief would my lease earn?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_41.md)
- [30 C.F.R. § 203.42 (2026) § 203.42   What conditions and limitations apply to royalty relief for deep wells and phase 1 ultra-deep wells?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_42.md)
- [30 C.F.R. § 203.43 (2026) § 203.43   To which production do I apply the RSV earned from qualified deep wells or qualified phase 1 ultra-deep wells on my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_43.md)
- [30 C.F.R. § 203.44 (2026) § 203.44   What administrative steps must I take to use the royalty suspension volume?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_44.md)
- [30 C.F.R. § 203.45 (2026) § 203.45   If I drill a certified unsuccessful well, what royalty relief will my lease earn?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_45.md)
- [30 C.F.R. § 203.46 (2026) § 203.46   To which production do I apply the royalty suspension supplements from drilling one or two certified unsuccessful wells on my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_46.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_32. Check the current official text before relying on it. Not legal advice.
